AGB Final Exam Version 1 Questions And Verified Answers Graded A+.

California's largest Ag county? - correct answer Fresno Number of jobs related to Ag? - correct answer about 10 billion what percent of US employment is Ag - correct answer 9.2% The size of California farms relative to the U.S. average, and their ownership structure? - correct answer Average Size of California Farms: 327 acres Average Size of U.S. Farms: 435 acres California farms are generally smaller than the average size farm in the U.S. California farms are mainly family owned and operated. At least 7 of the top 10 agriculture products produced in California in 2011 - correct answer Milk & Cream Almonds Grapes Cattle Nursery products Berries- All Strawberries Hay Lettuce Walnuts Tomatoes Central Valley Water Project: Who benefits? What is the water used for? Who funds it? - correct answer Sacremento and San Joaquin Valleys 90% Agriculture Federally funded State Water Project: Who benefits? What is the water used for? Who funds it? - correct answer Los Angeles Provides water for urban use but it is also used for Ag irrigation Funded by the state Colorado River Aqueduct/All American Canal: Who benefits? What is the water used for? Who funds it? - correct answer Metropolitan Water District of Southern California. Supplies water to San Diego and Imperial Valley but it is mostly for Ag use. Federally Funded Define the unique aspects of agribusiness (8) - correct answer Food is vital to survival Biological: depends on nature Seasonal Weather Uncertainty Many types of businesses Variety of Market Conditions Rural Areas Government Envolvement Percent of income spent on food in US vs. other countries (general) - correct answer Income spent on food in U.S.: 13% Percent of income spent on food in other countries: much higher than ours. Japan: 17% India 52% Describe the food marketing bill - farm vs. marketing share - correct answer Farm share: 15.5 cents of the dollar vs. Marketing share 84.5 cents of the dollar. Over the past 20 years the farmers value of the dollar has decreased. We are spending more on food but the money going to farms isn't increasing. Identify the value added to food products (dollar break-down by sector) (9) - correct answer Food service: 31.2 cents Food Processing: 22 cents Retail Trade: 12.2 cents Farm & Agribusiness: 10.8 cents Finance & Insurance: 6.1 cents Packaging: 4 cents Transportation: 3.5 cents Advertising: 2.4 cents Legal Accounting: 2.1 cents what are three primary segments of the food system - correct answer The Food Sector The Production and Agricultural Sector The Input supply Sector Describe the Food Sector - correct answer Marketing channel: Transportantion, Paking/cooling, sales at various levels of the marketing channel, Food processing, wholesale, retail, Food service Describe The Production and Agriculture Sector - correct answer Most production comes from a small number of giant farms. Each farmer feeds 155 people. Describe the The Input Supply Sector - correct answer Manufacturing Service: Financing, Farm management services, Grading and inspection, Cosnulting. Distributing: ways of getting manufactured inputs to farms: cooperatives, seed and fertilizer reps, dealer networks. Whats the difference between FOB Shipping Pt. vs FOB Destination - correct answer FOB Shipping: FOB (freight on board/free on board) shipping point is that means ownership of goods is transferred to the buyer as soon as the public carrier accepts the goods from the seller. The buyer assumes ownership of the goods as soon as they leave the supplier's location. BUYER PAYS, least risky for buyer FOB Destination: the seller will incur the delivery expense to get the goods to the destination. The title to the goods usually passes from the buyer to the seller at the destination. The sale does not occur until the goods reach the destination. SELLER PAYS What are the 4 areas of the food sector - correct answer Food Processing Food Retailing Food Service Food Wholesaling what are the 4 types of food retailers - correct answer Supermarkets (Safeway) Super stores Warehouse Club stores (Costco) Super Centers (walmart). What are the three types of Food Wholesalers - correct answer Merchant wholesalers Manufacturer's sales offices and branches Wholesale Agent/Broker What do Merchant Wholesalers do? - correct answer 70% of total wholesalers. Buy groceries from processors and resell it to retail institutions for profit. Take title ownership of goods before reselling. Example: Sunkist Growers Inc., Dole Fresh Fruit Company What do Manufacturer's sales offices and branches do? - correct answer Manufacturers' sales branches and offices are owned & operated by manufacturers but are physically separated from manufacturing plants. They are used for the purpose of distributing the manufacturers' own products at the wholesale level. Example: Kori Tuggle's company What do Wholesale Agent/Brokers do? - correct answer Buy and sell on commision, do not take title to the goods. Help merchants set up their sales and get a percent of the commision. Example: Ebay, ticket master, service fees Identify the types of transportation used in agriculture and relative costs - correct answer Barge: .72 cents per ton-mile Rail: 2.7 cents per ton-mile Truck: 26.61 cents per ton-mile Air: dollars per ton mile Define and give examples for vertical integration in agribusiness - correct answer Owning more than one segement of the food sector. A company may produce, process and distribute a food production. Exmaple: Foster Farms, Sunmaid Raisins, Greenway Farms Describe the benefits of international trade (5) - correct answer Increased export and sales Take advantage of economies of scale Diversify across markets, reduces risk Global brand recognition extend product lifestyle Describe the challenges of international trade (6) - correct answer Cultural Differnces (sense of space, language, importance of time, etc) Accounting Differnces Management Challenges Exchange rate fluctuations global brand recognition Sanitary and phytosanitary Issues Describe the trends in global agribusiness/agricultural trade. $ exported % exported - correct answer America exported $21.25 billion in 2013. 45% total agriculture is exported to 156 countries. California Exports 14.7% of the total U.S. Ag exports. Agriculture is the only U.S. Industry with a trade surplus. List California's top 5 export customers - correct answer Canada European union China/Hong Kong Japan Mexico List California's top 5 export products - correct answer Almonds Dairy Wine Walnuts Pistachios